Moroccan employers happy with interest rate cuts

Head of Moroccan employers association (CGEM) Chakib Alj said the key interest rate and reserve requirement cut to 1.5% and 0% respectively are conducive for an economic recovery from the repercussions of the coronavirus.

These cuts give banks more flexibility in financing enterprises during this crisis notably SMEs, he told local media.

The government has asked banks to ease access to loans for struggling enterprises and has set up a mechanism offering state guarantee for such loans known as Damane oxygen.

Intelaka program, launched before Covid-19 outbreak, will ease young entrepreneurs’ access to bank loans to help them set up their businesses with 4000 loans granted so far by Moroccan banks.

Meanwhile, members of the CGEM have urged the government to delay its plan to raise the minimum wage by 5% due in July.

Tourism business lobby within CGEM asked the government to extend unemployment stipends of 2000 beyond June as they expect their sector to be the most hit and the last to recover from the coronavirus repercussions.